Polaris announced that sales volumes in Q1 2016 were 516,000 tons which was modestly below its expected range of 550,000 to 600,000 tons. The company said heavy rain in its key markets, as well as scheduled maintenance at one of its Bay Area delivery points, continued to impact volumes.
Sales at Long Beach, Calif., were better than expected during the quarter and, when combined with expectations for several large orders early in Q2, necessitated re-allocating volume from immediate sales to restocking inventory at the Long Beach terminal. Total sales volumes in March 2016 were strong at approximately 314,000 tons which is consistent with monthly volume expectations for the full year.
Over the past several weeks the company has supplied materials for three large foundation pours at the Oceanwide Plaza project, totaling approximately 35,000 tons of sales from its Long Beach Terminal in late March and early April, with a fourth pour for a further 10,000 tons scheduled for later this month. The Oceanwide Plaza project is a 2.5 million-sq.-ft. multi-use development in downtown Los Angeles with an estimated cost of more than $900 million.
In addition to the large volume pours, the company said it is seeing a better than anticipated volume of daily sales for other smaller projects. "Consequently, we are optimistic about our potential for growth in this new market," the company stated.
As a result of actual sales through March, and ongoing discussions with customers in San Francisco and Long Beach, Calif., the company has increased confidence in its volume expectations for 2016 and expects full-year sales volumes in the range of 3.2 million to 3.5 million tons.
- San Francisco volumes currently expected to be 2.9 million to 3.1 million tons.
- Long Beach volumes currently expected to be 200,000 to 400,000 tons.
- Q2 2016 shipments are currently scheduled in the range of 0.9 million to 1.1 million tons, including at least 2 deliveries to Long Beach.
Ken Palko, president and CEO, commented: "Weather-related disruptions to construction activity as well as the previously mentioned maintenance made for a slower than expected first quarter, but March was a robust month and we are seeing very healthy volumes in planned shipments through the second quarter. Long Beach sales and operations have performed better than we initially expected. In addition to the Oceanwide Plaza project, we are in final discussions on several other large, high-profile projects in Los Angeles in 2016, and continue to be excited about the developments occurring in this market."